Fiscal Year 09 Water Rate Adoption: Questions and Answers

What is the rate increase for Fiscal Year 2009?

For fiscal year 2009, the water and sewer rate increase will be 14.5%. For the typical single family home, this means that average annual water and sewer costs would increase from $699 to $801, an increase of $25 per quarter, or approximately $8 more per month. This increase is three percentage points higher than 11.5% increase projected at this time last year.

What do water rates pay for?

Water rates fund the delivery of clean drinking water and the removal of waste and storm water, including the construction, operation, and maintenance of all water infrastructure, from in-city sewers, waste water treatment plants, and water mains to dams and water quality projects in the upstate watersheds. New York City has one of the largest water and sewer systems in the world, which each day delivers high quality drinking water to more than 8 million City residents. Water rates not only fund the day-to-day operation of this system but ensure that it will continue to work for decades to come.

Why is a 14.5% rate increase necessary?

DEP recognizes that both nationally and in New York City, many residents are experiencing financial pressure, and that any increase is significant for our customers. We have worked hard to moderate the need for rate increases, both by reducing agency expenses whenever possible, and implementing more effective enforcement tools to help us collect revenue.

However, it is important to remember that, like most water utilities around the country, DEP's budget is funded by the money it collects through water and sewer rates. As DEP begins or continues several major projects over the next few years, including the ongoing construction of Water Tunnel No. 3, repairs to the Delaware Aqueduct, and major upgrades and repairs to treatment plants, sewers and other water infrastructure, budgetary needs will be great. Most of these projects are mandated by Federal or State regulators, and all will ensure that the health of the City's waterways continues to improve and that DEP continues to provide clean, safe water to New Yorkers for decades to come.

Even with this rate increase, New York City's rates are still below the national average and New Yorkers will still pay less for their water and sewer services than the residents of most other American cities.

What are you doing to moderate the rate increase?

DEP recognizes that both nationally and in New York City, many residents are experiencing financial pressure, and that any increase is significant for our customers. We have worked hard to moderate the need for rate increases, both by reducing agency expenses whenever possible, and implementing more effective enforcement tools, like the Payment Incentive Program, service terminations, and a stand-alone lien sale, to help us collect revenue. The Fiscal Year 2009 rate proposal reflects only those costs essential in providing New Yorkers with high-quality drinking water now and into the future.

Already, our Payment Incentive Program, which offers a significant incentive to delinquent customers who settle their accounts before April 22, has generated substantial revenue. The May 19, 2008 lien sale and ongoing service terminations for delinquent residential customers will also generate substantial revenue moving forward. Additionally, as more of our customers have become aware that there are consequences for nonpayment, delinquency rates have slowed dramatically, and we believe we now have the tools to continue these successes in the future.

Is there anything I can do to lower my water bill?

DEP charges water customers based on consumption, which means that varied usage and leaks can drastically affect quarterly bills. Catching leaks before they become problematic can save you hundreds of dollars a year in water and sewer bills.

If you are a homeowner, check your plumbing fixtures to ensure they are working properly and not wasting water. For a free, comprehensive leak audit, call (718) 326-9426.

Are there any financial assistance programs available to water and sewer customers?

Seniors, those affected by the nationwide predatory lending, mortgage and foreclosure crisis, and others having difficulty paying their bills may be eligible for DEP's Safety Net program, which can help you work with a range of assistance programs citywide, including budgetary counseling, emergency grant/loan and home improvement services.

To learn more about the Safety Net Referral Program, please call our customer call center at (718) 595-7000. Literature is also available at our customer service outreach events or as a downloadable PDF here.

Note: Only those customers facing collections actions, such as service termination or lien sale are eligible for the Safety Net program at this time.